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How to stop wasting ad spend with Dynamic Tagging
With the increasing demand for fashion retailers to overcome inventory issues while enhancing the customer experience, the brands that can continually adapt to new technologies have the best chance of success.
AI is becoming ubiquitous in the customer journey, and according to statistics collected by Shopify, 79% of corporate strategists reported that AI will be critical to their success in 2024, while more than 80% of retail executives expect their companies will adopt AI automation by 2025. Meanwhile, McKinsey revealed that the adoption of AI tools in retail has increased by 25% year over year since 2020.
These findings indicate the importance of utilizing advanced data and insight to drive business growth, and integrating efficiencies and automation into daily operations—or risk being left behind.
In light of this, Style Arcade has added to its AI-powered suite of analytics tools to introduce advanced dynamic product tagging. Fashion retailers will now be able to build better precision across advertising and inventory to reduce ad spend wastage with high-converting products.
Let’s dive into what this means, and how fashion’s digital marketers and e-commerce teams will benefit from dynamic product tagging for enhanced day-to-day product performance.
What is Style Arcade’s dynamic product tagging?
Style Arcade allow brands to automate high-converting product feeds across Google Shopping campaigns, Meta DPA campaigns and email marketing campaigns using smart Style Arcade metrics like size availability, weeks cover, stock availability, return rate, and profitability.
For context, consider your current product feed channels; Google Shopping, Facebook dynamic product ads (DPA) and, say, Klaviyo campaigns and flows. These three channels will be impacted the most by dynamic product tagging, but none more so than Google Shopping.
Why? Right now, many brands are leaning on Google Performance Max (pMax), where Google uses AI to run shopping campaigns using its own algorithms to select which products to show customers. The problem is that a) your team doesn't have much control over what products are popping up first in your Shopping feed and b) PmAx charges you based on clicks, not from the sale.
Google’s algorithm will prioritize a product with a high click-through rate, over its ability to convert. Imagine paying for clicks on products that have next to no sizes left.
Ever had that one particularly popular dress that just keeps driving traffic, even though it has barely any stock? Without the intelligence of a high-converting product feed, that dress is just using up your advertising budget, and leaving potential customers empty-handed.
Google doesn't have access to all the key metrics that really impact the performance of products in campaigns, or help reduce ad spend wastage. But Style Arcade does.
In fact, Style Arcade’s dynamic product tagging will enable your team to:
- Improve conversion rates by ensuring products have high size availability and stock cover
- Decrease return rates by excluding high-return products from shopping campaigns
- Improve profitability by prioritizing products with high margins
- Improve click-through rate with best-selling or new products for first-time customers
Here’s how you could implement your tagged feeds to increase conversion:
- Send an email campaign to new customers with a product feed included that has an above-average new customer acquisition %
- Send an in-store welcome campaign to first-time shoppers in a particular retail store, with a product feed of that store’s best sellers that have high stock, encouraging customers to repeat purchases based on what that store is selling well
- Automatically remove products from your Google pMax shopping campaign that have a low size availability to drive conversion and reduce customer bounce
- Automatically remove products from your Google pMax shopping campaign or DPA campaigns for new customers that have low profitability to drive profit contribution margin from advertising campaigns
- Automatically remove products with a high return rate from pMax or DPA campaigns to ensure first-time customers aren't going to return their first purchase with you
Aje Athletica's dynamic data win
Over a three-month period, Aje Athletica worked with Elephant Room to optimize their Facebook DPA campaigns and deploy size and stock availability metrics from Style Arcade’s dynamic tagging function. These were the results:
- Outbound Click Through Rate increased by 38%
- ROAS increased by 3%
- Conversion Rate (Impression-based) increased by 13%
For Aje Athletica, it was about making sure they had the right products, in front of the right customers with high size availability, in order to optimize conversion rather than just click-through.
Now, it’s up to retailers to prioritize solutions that drive revenue through engagement and omnichannel opportunities. Style Arcade’s dynamic product tagging is designed for retailers and digital marketers to enhance efficiency, and ultimately drive profitability through customers who find what they’re looking for. Interested in how this function can set your team up for 2025?
Main Image Credit: Vogue Scandinavia
